Multiplayer permission for Minecraft

It’s Minecraft, that’s really the only game I play with multiplayer. I have all of my permissions turned on.

Could you describe why multiplayer is not functioning on your account? Family settings may indeed be the reason?

Is the account a 'child' account? If so, see here:
https://answers.microsoft.com/en-us/windows/forum/games_windows_10/minecraft-privacy-and-online-safety-settings/b61e7b37-d332-4be0-b479-8873be04d052

Hi, I hope you're doing great out there despite the issue that you're experiencing. I am an Independent advisor and I am here to help you in regards to your concern.

For you to manage it you can simply sign in to https://account.xbox.com/settings.

If the system detects that your account is a child account you will be redirected to a support site and if not you will be able to change it successfully.

If you were redirected to a support page, please sign in to https://account.microsoft.com/family and check if there is an organizer account linked to your account then use the organizer account so sign in to https://account.xbox.com/settings then "allow" the setting on this screenshot:

Because Xbox 360 edition for minecraft is not supported anymore, I think you are only able to play local co-op instead of online multiplayer. I could be wrong though. If minecraft Xbox 360 does support multiplayer co-op, then the problem could be that
your kids have child accounts and their permissions for online multiplayer is turned off. I hope this helps!